Suzlon's offer to buy REpower approved by German regulators
Mumbai: Suzlon Energy has said that its $1.3-billion offer to buy German wind power company REpower has been approved by the German financial watchdog BaFin. The offer starts on Friday and ends on April 20.

Suzlon had launched a counter bid earlier this month in a joint venture with Portugal-based Martifer, against French company Areva's bid for REpower.

Martifer and Areva hold 25 per cent stake and 29 per cent stake, respectively, in REpower and the public holds around 45 per cent.

Suzlon-Martifer's counter-bid is through a 75:25 joint venture company Suzlon Wind Energie GmBH, in which Suzlon holds 75 per cent stake. No minimum acceptance threshold exists in the offer.

Tulsi Tanti, chairman of Suzlon Energy, in a conference call with reporters said, "We are confident of winning the offer and that shareholders of REpower will approve the plan eventually," he said. His company had no plans to raise its bid for REpower. And there have been no talks with Areva either, he said.
Back to News Review index page  

Jindals reach agreement with Bolivian government
New Delhi: Jindal Steel and Power (JSPL) has come to an agreement with the Bolivian Government regarding its proposed $2.1 billion investment in mining and steel-making at the El Mutun iron ore mines and would sign the final agreement by mid-April. The company plans to start on the groundwork by the last quarter of the year.

In June 2006, JSPL won the bid for the mines and for setting up steel plants but the Bolivian authorities were unable to decide on the finer details, most of which related to financials. The Special Purpose Vehicle (SPV) for the Bolivian investment - Jindal Steel Bolivia SA - was incorporated in October 2006.

El Mutun, believed to be one of the world's biggest iron ore reserves, contains an estimated 40 billion tonnes of iron ore of medium-grade quality. The plants would be gas-based since Bolivia is a major producer of natural gas and has agreed to sell natural gas at $3.91 per million British thermal unit to Jindal Bolivia that would account for 70 per cent of the project's power needs.
Back to News Review index page  

TRAI not to touch DTH tariffs
New Delhi: The Telecom Regulatory Authority of India has decided not to regulate the tariffs for Direct to Home services for the present and has in a consultation paper on issues relating to DTH, said that a regulation was required only in case the level of competition was not adequate.

The regulator feels that there is some competition between the two DTH service providers as well as between DTH and cable. Competitive packages and offers have been made by all the service providers as against the situation just one year back when the consumer had virtually no choice and options.

Considering all these developments, it has been decided that these issues should be looked at after some time when the impact of the competition in general, and impact of roll out of the CAS in cable TV in particular can be assessed TRAI said.

TRAI had earlier said that a system of prescribing a tariff for each channel could be looked at for DTH services on the lines of what it has implemented for CAS.

Dish TV and Tata Sky have 2.3 million DTH subscribers compared to 68 million TV homes that have cable and satellite service. While Doordarshan also offers DTH services, it is free-to-air. Sun TV Ltd has received its licence and Reliance Blue magic has a letter of intent to launch their DTH services.
Back to News Review index page  

Construction cos hit by Sec 80 IA withdrawal
Mumbai: Construction companies have been hit badly by the withdrawal of Section 80 IA benefits.

Section 80-IA was introduced to encourage private sector participation in the development of infrastructure, and not for persons/entities who were merely executing the civil construction work or any other works contract.

The new amendment will take retrospective effect from 1st April, 2000, and will apply in relation to the assessment year 2000-2001 and subsequent years. As a result, construction companies that merely execute development work will have to shell out a large amount towards past tax provisions.

According to the amendment a case where an entity makes the investment and carries out the civil construction work will be eligible for tax benefit under section 80-IA. Against this an entity that enters into a contract with an eligible participant for executing works contract will not be eligible for the tax benefit under section 80-IA.

Construction contractors had so far been availing of the section 80IA benefit for projects awarded by infrastructure developers viz NHAI and state government agencies-awarded projects in roads & bridges, irrigation, water supply and sanitation.

These benefits meant that companies were paying a minimum alternate tax (MAT) of 11.2 pc However, the clarification to section 80IA now stipulates that these companies pay the full tax rate of 33.66 pc from retrospective effect from 1st April, 2000.

Analysts say these companies will have to adjust for this from their reserves thereby impacting their respective net worth.
Back to News Review index page  

M&M launches new Bolero
Mumbai: Mahindra & Mahindra (M&M) has launched the latest version of its SUV Bolero, priced at Rs4.58 lakh.

The company said its products are continuously honed to present a superior offering of performance and features and at the same time optimizing the cost structure. While retaining the core values that has made it the leader, the new Bolero carries forward the Mahindra equity of out-performance and luxurious toughness.
Back to News Review index page  

RPG to acquire Fujitsu's 30-pc stake in Zensar
Mumbai: The RPG group has decided to buy out co-promoters Fujitsu 29.51-per cent stake, in joint venture infotech company Zensar Technologies for an undisclosed amount. The RPG Group has increased its stake to around 60 per cent. The market value of the Fujitsu stake is Rs169.4 crore (at Rs245 a share).

The RPG group has identified IT as one of its core businesses and acquiring the partner's stake was the most obvious option. Fujitsu accounts for 5 per cent of Zensar's revenues and has promised to continue its association with the company's management, Goenka added.

Zensar Technologies stock rose 1.91 per cent on the BSE on Friday, to close at Rs242.65.
Back to News Review index page